5. The Coachella Gold Mining Company just paid a $4.50 per share dividend, the company's 100th consecutive annual dividend. The future, however, does not look bright. The mine is virtually depleted, and earnings are expected to decline 10% per year for the foreseeable future. Carlos Del Oro, the company's president, plans to continue the firm's policy of paying out 45 percent of earnings as dividends for the next five years. After five years the firm will liquidate all assets, and then use the proceeds to buy back all outstanding shares six years from now at $9.566 per share.The discount rate on the firm's stock is 20%.

1. What is the dividend expected by shareholders at date 1?
2. What is today's stock price?